When to Join, and When to Leave, the Exciting, High-Risk World of Startup Companies  

Startup companies offer high-risk, high-reward opportunities to those willing to take a chance on joining one. However, before you make the move, you need to determine if a particular startup is the right opportunity for you, and if the company has the team and tools it needs to be successful.

Before you can make any decision, it’s important to understand what a startup is.

A startup company is typically launched by a group of individuals who have come together to grow and develop a unique idea that adds value to a specific group of people. Members of a startup often have varying backgrounds, but all should have a passion for their product. Corporate structure at a startup is often looser than that found at larger organizations, and startups can be at various development phases, from building the product to being a fully funded and operational business.

Startup companies can be enticing for young people, working moms, and adventurous professionals because they provide a dynamic office experience and offer perks like flexible hours and vacation time, giving employees the freedom for personal pursuits. Startups provide professionals with a chance to venture into a more entrepreneurial role and develop new skills, but they also require significant dedication, energy, and often, long hours.

People join startups for a variety of reasons. Some people are solely interested in the opportunity to become an executive, but it is important not to get overly excited about titles. More often, people join a startup because they are excited to be part of a new venture or like the idea of pursuing a passion project that could become successful. They may even opt for equity rather than large salaries because of the potential financial outcome a startup offers. Before you decide if a particular startup is right for you, you should evaluate if the members of the team have the necessary tools to be successful in this high-risk environment.

Before venturing into the startup world, you should also be aware of the state of the business, recognize the signs that indicate the product or organization is struggling, and be prepared to exit if expectations are not met so that the experience doesn’t negatively impact future job opportunities.

When selecting a startup, consider the following:

• Does the team have the necessary skills to create or develop the intended product or idea?
• Are all individuals passionate about the business?
• Is everyone fully committed? Do they have dedicated hours and responsibilities?
• Are roles clearly defined, beyond job titles? Does each team member have specific business objectives and defined outcomes?
• Is the C-suite (executive team) full time and in the office daily? This team should be the most committed and fully focused on achieving core objectives.
• Has the executive team launched a successful startup before? Do its members have the necessary fundraising experience? Have they sold a business? Did they serve in key executive positions at successful companies in same arena?

The key sign of a successful startup is a team that works around the clock, without a set schedule. Business is always open, and everyone works hard.

If you are already an employee in a startup, you need to know when it is time to dust off your résumé and start searching for a new job. Here are some things to look for that may indicate it is time to move on.

• Founders who are distracted with nonbusiness matters, or who regularly attend to business that doesn’t impact the company.
• Team meetings and brainstorming sessions that never or rarely lead to implementation.
• Founders who are unable to see the big picture.
• Executives who hire friends or create nonessential roles that don’t add value to the core objectives or help the team achieve its goals.
• Teams that are not raising money.
• Innovation that has slowed and the acceptance that the status quo is all that matters.

Many startup employees are surprised when the company fails, but even with all of the right tools and the best team in place, most startups will fail. It’s not always possible to determine whether or not a startup will be successful down the road, but taking the time to thoroughly evaluate whether the team has the necessary potential and expertise, and to be aware of the possible pitfalls, can help you decide when, and if, to launch a career in the exciting world of startups.